We briefly discuss below the advantages and disadvantages of the GMX protocol for three types of users: users of exchange assets, liquidity providers, and speculative traders. What are the advantages and disadvantages?
GMX respects the privacy of its users. The copyright uses advanced privacy features to ensure that user data is kept confidential and secure.
GMX is a decentralized derivative copyright exchange that allows users to enjoy low fees and zero-slip transactions through an innovative GLP multi-asset liquidity pool and aggregated prophecy machine quotes. Users can stake GMX or GLP to gain the network’s native tokens.
However, this did not deter GMX’s growth in any real way thus far. Since the start of 2022, GMX averages a protocol revenue of USD $2M per month.
1) GMX/ETH liquidity is provided and owned by the protocol, the fees from this trading pair will be converted to GLP and deposited into the floor price fund
Liquidity providers can deposit single copyright to obtain GLP tokens or redeem previously deposited copyright with GLP tokens. GLP liquidity pools are immune to impermanent loss problems because the quantitative rule constraints of algorithmic quotes do not constrain them.
GMX has a strong and active community of users and supporters. This community plays a crucial role in the development and success of the GMX project.
Through an AMM, there will always be a willing counterparty at a given price as long as there is enough liquidity in the pool.
In more detail, this means that it is comprised of several liquidity pools, and trading on the GMX network is facilitated by these multi-asset pools. Users can provide liquidity to such pools and receive rewards in return. Liquidity provider rewards are sourced from market making, swap fees, and leverage trading.
This level provides full access to futures trading and up to 150x leverage without any restrictions, making it ideal for traders who prioritize both privacy and high leverage.
This reduces the price volatility of GMX and provides a stable source of income for pledgers. Users who stake GMX tokens also receive Multiplier Points, which boost the user’s share of GLP liquidity pool proceeds by a certain percentage.
As the GMX protocol continues to evolve, the release of Version 2 (V2) has introduced numerous innovations and improvements. V2 enhances trading efficiency and user experience by incorporating new features and optimizations. For instance, the trading mechanism in V2 has been refined to reduce transaction website costs while improving capital efficiency.
Traders or users who exchange assets use the GLP liquidity pool to buy and sell. Regarding spot trading, the GLP liquidity pool is not very different from other automated market maker agreements in that it charges 0.
Almost all centralized exchanges now require KYC as a standard practice. Recent examples from 2024 include copyright and BingX, both of which have implemented stricter KYC protocols, receiving mixed reactions from users on forums like Reddit.